Thrift Savings Plan G Fund Investments Suspended As Debt Ceiling Is Reached

Treasury Secretary Steven Mnuchin told congressional leaders "extraordinary measures" would be necessary to avoid a default until they raised the debt ceiling. Treasury Secretary Steven Mnuchin told congressional leaders "extraordinary measures" would be necessary to avoid a default until they raised the debt ceiling. Pablo Martinez Monsivais/AP

The federal employee Thrift Savings Plan has officially suspended investments into its government securities (G) fund to help keep the United States from defaulting on its debts until Congress raises the debt ceiling.

The debt limit had been statutorily suspended through Wednesday. “Beginning on Thursday, March 16, 2017, the outstanding debt of the United States will be at the statutory limit,” wrote Treasury Secretary Steven Mnuchin in a March 8 letter to congressional leaders.  “At that time, Treasury anticipates that it will need to start taking certain extraordinary measures in order to temporarily prevent the United States from defaulting on its obligations.”

TSP officials issued an announcement Thursday confirming that the suspension of G Fund investments was among those measures and reassuring participants that the step was not that unusual and would not hurt their savings in the long run.

» Get the best federal news and ideas delivered right to your inbox. Sign up here.

“G Fund investors remain fully protected and G Fund earnings are fully guaranteed by the federal government,” TSP stated. “This statutory guarantee has effectively protected G Fund investors many times over the past 25 years. G Fund account balances will continue to accrue earnings and will be updated each business day, and loans and withdrawals will be unaffected.”

It’s unclear when Congress will act on the debt limit, but lawmakers are expected to raise it in time to avoid a default. Analysts have said the extraordinary measures will stave off a default until this fall. 

Stay up-to-date with federal news alerts and analysis — Sign up for GovExec's email newsletters.
Close [ x ] More from GovExec

Thank you for subscribing to newsletters from
We think these reports might interest you:

  • Forecasting Cloud's Future

    Conversations with Federal, State, and Local Technology Leaders on Cloud-Driven Digital Transformation

  • The Big Data Campaign Trail

    With everyone so focused on security following recent breaches at federal, state and local government and education institutions, there has been little emphasis on the need for better operations. This report breaks down some of the biggest operational challenges in IT management and provides insight into how agencies and leaders can successfully solve some of the biggest lingering government IT issues.

  • Communicating Innovation in Federal Government

    Federal Government spending on ‘obsolete technology’ continues to increase. Supporting the twin pillars of improved digital service delivery for citizens on the one hand, and the increasingly optimized and flexible working practices for federal employees on the other, are neither easy nor inexpensive tasks. This whitepaper explores how federal agencies can leverage the value of existing agency technology assets while offering IT leaders the ability to implement the kind of employee productivity, citizen service improvements and security demanded by federal oversight.

  • IT Transformation Trends: Flash Storage as a Strategic IT Asset

    MIT Technology Review: Flash Storage As a Strategic IT Asset For the first time in decades, IT leaders now consider all-flash storage as a strategic IT asset. IT has become a new operating model that enables self-service with high performance, density and resiliency. It also offers the self-service agility of the public cloud combined with the security, performance, and cost-effectiveness of a private cloud. Download this MIT Technology Review paper to learn more about how all-flash storage is transforming the data center.

  • Ongoing Efforts in Veterans Health Care Modernization

    This report discusses the current state of veterans health care


When you download a report, your information may be shared with the underwriters of that document.